For a particular clothing store, a marketing firm finds that 16% of $10-off coupons delivered by mail are redeemed. Suppose six customers are randomly selected and are mailed $10-off coupons. What is the probability that at least two of the customers redeem the coupon?
A) 0.2472
B) 0.3513
C) 0.4015
D) 0.7528

Question

Quizplus · Accepted Answer

The probability of at least two customers redeeming the coupon is 1 minus the probability of none or only one customer redeeming the coupon. The probability of none redeeming the coupon is (0.84)^6 = 0.2472. The probability of only one redeeming the coupon is 6 * (0.16) * (0.84)^5 = 0.3513. Therefore, the probability of at least two redeeming the coupon is 1 - 0.2472 - 0.3513 = 0.4015.

For a Particular Clothing Store, a Marketing Firm Finds That